How to Customize Van Insurance for Your Business Needs

Van insurance is not just about the vehicles – it is about ensuring your business is protected and is in compliance with the law. The right van insurance policy will provide peace of mind for your business when the van is on the road, in the event of an accident, and with business assets in transit.

But with so many different types of policies available, how do you customize van insurance for your business? Let’s look at everything you need to know.

Inside This Guide:

1. Understanding Different Types of Van Insurance
2. Assessing Your Business’s Specific Insurance Needs
3. Key Coverage Options to Consider
4. Cost-Saving Strategies Without Sacrificing Protection
5. Tips for Comparing Insurance Providers
6. How to Review and Update Your Policy

Understanding Different Types of Van Insurance

Before you can customize your policy, you need to understand what’s available to you. Van insurance is highly flexible and there are many levels of coverage available. Choosing the right coverage will ensure you’re protected while remaining within your budget.

Commercial van insurance is very different from car insurance in many ways. Business vehicles are more likely to have higher risk, and may carry valuable tools, equipment, or even goods that need specialized coverage options. Business vans may also have multiple drivers, or drive in high-risk areas, which can impact both coverage needs and premium cost.

Take the time to understand the different policies available to you. Choosing the right insurance will not only protect your business’s vehicles, but also your business’s finances and reputation.

Let’s take a look at the main types of van insurance available. Most van insurance policies fall into one of three main categories, each offering different levels of protection for your business vehicles.

Third-party only

This is the most basic policy and is the minimum legal requirement for van insurance in the UK. It will cover:

• Any damage you may cause to another person’s property
• Injury to another person
• Damage to another vehicle

What it doesn’t cover is any damage to your own van, or any injury to yourself. This is the cheapest option, but provides the least protection for your business assets.

Third-party, fire and theft

This level of cover provides a bit more security than third-party, and will include everything from the above, plus:

• Protection if your van is stolen
• Coverage for damage caused by fire
• Protection against attempted theft damage

This middle ground option offers more security than the above, without the full cost of comprehensive coverage.

Comprehensive coverage

If you want full protection, comprehensive insurance will include everything from the above, plus:

• Damage to your own van (even if the accident was your fault)
• Personal injury protection
• Windscreen cover
• Coverage for personal belongings in the van

For business purposes, comprehensive cover is generally the best option (despite the higher premiums) as it will protect your business’s assets in full.

Assessing Your Business’s Specific Insurance Needs

When it comes to choosing the best van insurance for your business, the best policy is the one that’s tailored to your business’s needs. Here’s how to assess what you actually need:

Your industry

Different industries will have different risk profiles. For example, a business that delivers goods may need coverage for goods-in-transit, while tradespeople will need tools coverage.

Your operating area

The cost of van insurance varies greatly depending on where you operate in the UK. London tradesmen face premiums that are nearly double the national average, at £1,139.81 per year.

Your drivers

Younger tradesmen, particularly those aged 17-24 in London, face significantly higher premiums. Young tradesmen in London pay an average of £2,020.34 per year.

Your vehicle fleet

Electric vans have higher insurance premiums than diesel vans. Electric van insurance in London is on average £1,040.56 per year, while diesel van insurance is £753.39.

Key Coverage Options to Consider

Beyond the basic insurance types, there are a number of add-ons that are worth considering for business van insurance:

Goods-in-transit cover

If you carry products, materials, or someone else’s property in your van, this is essential. It will cover the items you are carrying if they are damaged or stolen while in your van.

Equipment and tools cover

For tradespeople, this add-on is vital. Most van insurance policies don’t cover tools and equipment, so you need this separate cover to ensure you won’t be left out of pocket if they are stolen or damaged.

Breakdown cover

If your business depends on your vans being on the road, this is essential. It will ensure you won’t face long periods of down time if a vehicle breaks down, with options for roadside assistance, recovery, and even a replacement vehicle.

Legal expenses cover

This will cover the costs of legal proceedings if you need to make a claim against someone else, or defend yourself against claims made by others.

Multiple driver cover

If multiple employees drive your business vans, you’ll need a policy that covers multiple drivers. Some policies cover any driver, while others will require you to name specific individuals.

Cost-Saving Strategies Without Sacrificing Protection

Here are a few smart ways to save on your van insurance premiums.

Increase your excess

Increasing your voluntary excess can help to lower your premiums, but make sure you could afford to pay it if you need to make a claim.

Install security devices

Installing approved security devices, such as alarms or tracking systems, can significantly lower your premiums as your van will be less likely to be stolen.

Build no-claims bonuses

If you encourage your employees to drive safely and don’t make any claims, you can build up a no-claims discount over time.

Tips for Comparing Insurance Providers

Don’t just go with the first quote you receive. Here’s how to compare providers effectively:

Look beyond price

Consider the provider’s claim settlement record, customer service quality, and their level of experience in business van insurance.

Look at policy details

The cheapest policy isn’t always the best value. Make sure you compare exclusions, excess amounts, and specific coverage details.

Look for specialist insurers

Some insurers specialize in commercial vehicles or particular industries. They may understand your needs better than a general provider.

How to Review and Update Your Policy

As your business grows, your insurance needs will change too. Schedule a calendar reminder to review your policy once a year, and take into account any changes to your operations, your fleet, or operating areas.

Don’t wait until renewal to change your policy if your business changes significantly. Contact your insurer if you buy new vans, hire new drivers, or move into new territories.

An insurance broker who specializes in commercial vehicles will be able to help you navigate the complexities of van insurance and ensure your coverage changes as your business does.

Wrapping It All Up

Unlike car insurance, which has seen a decrease in premiums, van insurance premiums have been increasing across the UK. The right policy balances protection with affordability.

Remember that the cheapest option isn’t always the best value – inadequate coverage can cost your business a lot more if something goes wrong. Instead, focus on choosing the right coverage that protects your assets, your employees, and your customers.

When choosing van insurance:

• Understand the different types of basic coverage available
• Assess your specific business operations and risk factors
• Consider important add-ons such as goods-in-transit and tools coverage
• Utilize cost-saving strategies that don’t sacrifice protection
• Compare providers thoroughly, looking beyond just the price
• Review and update your policy regularly as your business changes

By following these steps, you’ll be able to develop a van insurance strategy that protects your business while keeping costs affordable – so you can focus on growing your business with confidence.